Japan’s yen steadied on Monday after incoming Prime Minister Shigeru Ishiba indicated that monetary policy should remain accommodative to support the economy. This follows a surge in the yen after Ishiba’s leadership victory in the ruling Liberal Democratic Party, positioning him to become prime minister.
During the Asia session, the yen reached a one-week high but remained steady as Ishiba told NHK policy must stay accommodating. Analysts suggest a potential snap election could impact the yen short-term. In contrast, the euro and sterling were stable, while markets await crucial U.S. jobs data and European inflation statistics.
Commodity currencies like the Australian and New Zealand dollars soared to new highs on hopes of a Chinese economic recovery. These currencies benefited from China’s stimulus measures and the positive outlook on inflation and interest rates, which could favor global economic conditions and foster risk-taking behaviors.
